Business conditions in the Spanish manufacturing sector improved modestly in June. While the rate of new order growth eased further and was marginal, output rose at a faster pace, in turn leading firms to take on extra staff and increase purchasing activity. Meanwhile, input costs were broadly unchanged and output prices continued to fall. The seasonally adjusted Markit Spain Purchasing Managers' Index (PMI) - a composite indicator designed to measure the performance of the manufacturing economy - ticked up to 52.2 in June from 51.8 in May. This signalled a modest strengthening of operating conditions, and one that was slightly more marked than one month previously. The health of the sector has improved continuously since December 2013.